Queries Industrial and precious metals for Carlson

What’s the status of Carlson Mines’ industrial minerals project? I.C. Toronto, Ont.

Vancouver-listed Carlson Resources’ 9-claim industrial minerals project is a kaolin and silica sand deposit near Kapuskasing, Ont. President Robert J. Platt tells us the company is now commissioning a final feasibility study by Kilborn Ltd. on the deposit which hosts estimated reserves to date of 63 million tons of ore. Full feasibility documentation is expected by this fall.

In conjunction with Carlson’s option to acquire a 50% interest in the property, all parties to the original agreements have agreed to transfer their interests in the property to the James Bay Kaolin Corp., which will proceed with full financing and development of the deposit over the next several years.

Mr Platt says that it has also been agreed that a realistic value of the 9-claim property today will be set at $3.2 million rather than the $40 million originally calculated. This new value reflects the reality of establishing a marketing presence in the industrial mineral markets over the long-term, says Mr Platt.

Carlson will issue 2.6 million common shares at a price of 61.5 cents a share rather than the 5 million shares originally agreed to for the purchase of its 50% interest.

Carlson in return will receive 2.6 million common shares of the James Bay Koalin Corp. at a price of $1 per share in return for its interests in the project. This will represent 53% of the equity of the new company.

Besides its interest in industrial minerals, the company is also involved in gold exploration. “A quite exciting situation,” Mr Platt says is its 500-claim property 15 miles northwest of the Hemlo, Ont. gold mines.

Carlson owns a 45% interest in the property in a joint venture agreement with Black Gregaro Explorations. Two diamond drill holes have been completed to a depth of 350 ft, with seven more scheduled as part of the initial phase of a $300,000 program.

Core logging and splitting is now under way and assay results expected in early April .

Once the first phase is completed, Carlson’s interest in the property will become 36%. Black Gregor has the right to earn up to a 45% interest in the properties by spending $3 million over the next three years.

Carlson trades on the Vancouver Stock Exchange at the 64 cents level with a 52-week high and low of 84 cents and 35 cents , respectively.